While filing ITR has several benefits, making mistakes while filing ITR can result in severe complications, including huge penalties. Let us look at some of the common errors seen while filing ITR:
- Choosing the Incorrect Form Selecting the incorrect form while filing your returns can put you at risk. While filing your ITR, you need to select the correct form, which is based on the income category the taxpayer belongs to. If you choose the wrong form, you may not report all the information and the income tax department can issue a notice for under-reporting income.
- Selecting the Wrong Assessment Year While filing an ITR, you need to mention the correct assessment year. People often get confused about the financial year and assessment year. This can lead to the wrong ITR, which can lead to penalties.
- Incorrect Personal Details It is necessary to check your personal details like name, postal address, email id, etc. are accurate in the form. You need to cross-check these details with your PAN. Also, ensure that your Aadhaar number is updated.
- Mention all Sources of Income It is mandatory to report income from all the sources such as rental income, income from a savings account, returns from the fixed deposit, etc. Irrespective of your income slab, it is mandatory to report income from all sources. Any discrepancy in the income can easily be detected from Form 26 AS.
- Claiming Fake Deductions Some taxpayers tend to claim fake deductions or inflate the existing deduction to reduce their income tax liability. Filling all the information accurately as per your knowledge is mandatory. Wrong reporting can lead to penalties.
- Not Checking Form 26A and TDS Certificates A salaried employee must cross-check the details of Form 16 with form 26A, which is issued by the employer. Form 26A includes all the details of your income, TDS, advance tax paid by you, etc.
- Not Filing Revised Return After filing your tax, if you discover some error, then it is necessary to rectify your mistake and file the revised return. It is permissible and can safeguard you from problems down the road.
ITR filing is necessary every year with the correct and complete information. Income Tax Department can take action as per the provisions of the Income Tax Act if any discrepancies are discovered. So, it is critical to ensure due compliance and double-check your entries while filing the ITR.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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